Integrating PSM with SAP SuccessFactors

SAP provides standard integration between SAP S/4HANA Cloud, public edition for public sector and SAP SuccessFactors Employee Central Payroll.  By activating underlying scope items and the set up of integration and communication scenarios, you set up the integration platform that will enable automatic transfer of master data from-and-to SAP S/4HANA Cloud, public edition for public sector as well as payroll postings from Employee Central Payroll to SAP S/4HANA Cloud, public edition for public sector.

The account assignments necessary in SAP SuccessFactors Employee Central for SAP S/4HANA Cloud for public sector integration are as follows:

• Cost objects such as cost centers or WBS elements
• Fund, grant, and functional area should be derived from the master data and/or derivation rules 

The account assignments necessary in SAP S/4HANA Cloud, public edition for public sector for SAP SuccessFactors Employee Central Payroll integration are as follows:

• The G/L account will be determined based on the automatic account assignment rules set up in SAP S/4HANA Cloud during the payroll postings, and the budget account will be determined based on the G/L account PSM properties. 
• Cost objects such as cost centers or WBS elements from the employee assignment.
• Fund, grant, and functional area from the employee assignment.
• The budget period will be derived during the payroll posting, it must not be persisted in the SAP SuccessFactors systems that integrates with the SAP S/4HANA Cloud, public edition for public sector.

The setup for this integration takes place on two levels:

1. For the technical integration, you activate communication scenarios in SAP S/4HANA and you activate business scenarios in SAP SuccessFactors. This allows data to pass between the two systems.
2. For the business integration, you create, update, or delete PSM master data in SAP S/4HANA, and the corresponding master data are retrieved and updated in SAP SuccessFactors by using the SAP Master Data Integration service.

After the technical and business integration are complete, public sector master data changes in SAP S/4HANA Cloud are continuously and automatically (by scheduled batch jobs in both systems) replicated into SAP SuccessFactors.

The following figure shows how the data flows using cost center as an example.

Funds, grants, functional areas and project controlling objects (WBS element) can also be replicated. 

The communication management apps allow you to integrate your system or solution with other systems to enable data exchange.

Communication arrangements in SAP S/4HANA Cloud provide the communication with web services.

The following communication arrangements are needed for the SAP S/4HANA - SAP SuccessFactors integration:

• SAP_COM_0580: Finance - Employee Central Account Assignment Derivation Validation Integration
• SAP_COM_0659: Establishes the connection between SAP S/4HANA and Master Data Integration
• SAP_COM_0594: Establishes the connection through Master Data Orchestration and SAP S/4HANA

This integration scenario allows you to do the following:

• Use SAP Master Data Integration to transfer cost center data, funds, grants, and functional areas from SAP S/4HANA Cloud to SAP SuccessFactors
• Read other business configuration settings from SAP S/4HANA Cloud in SAP SuccessFactors Employee Central Payroll
• Transfer payroll posting documents from SAP SuccessFactors Employee Central Payroll to SAP S/4HANA Cloud

For the technical integration between SAP S/4HANA Cloud and SAP SuccessFactors Employee Central Payroll, you activate a communication scenario that allows payroll data and changes to configuration settings to pass between the two systems. For more information on how to do that, please refer to the setup instructions of the 1NL scope item in the SAP Process Navigator.

The following figure shows how the data flows.

During the payroll run, in SAP SuccessFactors Employee Central Payroll, a posting document is created that is transferred to G/L accounting in SAP S/4HANA Cloud, where a corresponding journal entry is posted as an expense and liability posting for payroll. Public sector postings are supported for international payroll functions and for payroll functions specific to the United States.

The following scope items are needed to achieve the integration between SAP S/4HANA and SAP Success Factors:

In addition to the public sector and financial scope items, you need the following:

• 1NL - Payroll processing with SAP SuccessFactors Employee Central Payroll
• 4AF - Workforce management with SAP Master Data Integration
• 4AJ - Financial master data for SAP SuccessFactors Employee Central 

You can create, update, and delete Public Sector Management master data such as funds and functional areas as well as the project controlling object (WBS element) in the SAP S/4HANA Cloud solution. These updates can be transferred to SAP SuccessFactors by ongoing replication using the SAP Master Data Integration service which runs on the SAP Business Technology Platform.

Master data replication can be triggered automatically after PSM data is newly created, changed, or deleted if the automatic replication is enabled for the corresponding PSM cost objects.

Manual replication can also be triggered for the initial data load from SAP S/4HANA Cloud to SAP SuccessFactors Employee Central by using the Master Data Orchestration app.

In SAP SuccessFactors a scheduled batch job fetches the PSM master data from the SAP Master Data Integration service on the SAP Business Technology Platform, and the PSM master data are then updated in SAP SuccessFactors.

Customers should trigger and schedule this replication in the Employee Central Integration Center by selecting the appropriate business scenarios.

SAP S/4HANA Public Sector Management integrates into SAP SuccessFactors Employee Central in four different scenarios:

• For cost assignment and distribution during the onboarding process
• For position cost assignment and % distribution
• For employee cost assignment and % distribution
• For alternative cost assignment when creating a non-recurrent payment

The ability to define the employee cost assignment is visible in SAP SuccessFactors onboarding when doing a new hire data review, a rehire, or in the Manage pending hires data review screen.

SAP SuccessFactors users will be able to indicate the employee's cost assignment during this step of the business process, streamlining the information between departments.

Position management enables the following:

• Position management in SAP SuccessFactors Employee Central can now support the use of alternative cost objects such as funds, grants, functional areas, and WBS elements.
• Users can split position costs across multiple cost assignments.
• Customers can enable the position to Employee Sync if cost allocations must sync from the position to the employee.
• Customers can also use the mass import tool to upload mass position cost assignment records.

SAP SuccessFactors Employee Central enables the following:

• SAP SuccessFactors Employee Central supports the recording of cost allocations at employee level across funds, grants, functional areas, budget periods, and WBS elements.
• Customers can add additional cost objects through extensibility functionality.
• Real-time data validation/derivation exists with standard integrations to S/4HANA Cloud, public and private editions, financials, adhering to finance derivation rules.
• Standard replication to SAP SuccessFactors Employee Central Payroll (IT0001 & IT0027) is supported for payroll processing purposes.

Users of SAP SuccessFactors Employee Central can define an alternative cost assignment when creating a one-time payment and post to a WBS, funds, grants or alternative cost center.

Standard replication to SAP SuccessFactors Employee Central Payroll (IT0015 Additional Payments) is supported.

In order for the PSM account assignment derivations to work for employee cost assignment, communication scenario SAP_COM_0580 has to be set up. This scenario offers the integration of Public Sector Management (PSM) on SAP S/4HANA Cloud Edition as a data provider to the SAP SuccessFactors Employee Central.

This scenario enables validation and derivation of PSM cost objects assignment in SAP SuccessFactors Employee Central against the rules defined in the SAP S/4HANA Cloud for public sector system.

SAP S/4HANA Cloud for public sector allows to define availability control (AVC) tolerance limits if you want to raise warning messages instead of AVC errors during payroll posting from SAP SuccessFactors Employee Central Payroll.

HR Payroll is a separate activity group level in the definition of tolerances for which you can set the messages to W (for warning) if you want to avoid payroll posting errors due to budget availability.

The Manage Workforce application (SAP Fiori ID F6097) enables you to view, create, and update workers (employees and contingent workers), including work agreements, and change employment situations.

Worker master data is replicated using Master Data Integration services when your SAP S/4HANA Cloud system is integrated with SAP SuccessFactors Employee Central and underlying communication scenarios are set up. To avoid data inconsistencies in this scenario, you cannot edit your HR data in the manage workforce app, but only in SAP SuccessFactors Employee Central.

Use the role SAP_BR_ADMINISTRATOR_HRINFO to access the manage workforce app.

Public Sector Management account assignments are available in the cost assignment tab of the worker overview in the Manage Workforce app. You can navigate to public sector account assignment details by selecting (for a specified worker) the Worker Overview → Work agreement details → cost assignment. Cost centers where employees belong would be available in the General Information tab and this should be the same in the Cost Assignment tab when the organization assignment is equal to Yes.

If there are multiple account assignment distributions maintained for payroll posting purposes from Employee Central, then respective distribution percentage will be available with cost and public sector account assignment details.

Public sector account assignments such as funds, functional areas, and grants, along with cost object assignments are available in the Cost assignment tab of the work agreement in the worker overview section of Manage Workforce app.

When your SAP S/4HANA Cloud system is integrated with SAP SuccessFactors Employee Central and the associated communication scenarios are set up, the worker master data is replicated with the public sector account assignments using SAP Master Data Integration services. Public sector account assignments for the sender (in the case of an activity allocation) or receiver (in the case of a statistical key figure values) are determined from the worker master cost assignment record when the organization assignment is defined as Yes.

As part of the SAP Analytics Cloud Public Sector Management KPI reporting content in the SAP Analytics Cloud, standalone version, we have delivered the following standard views:

• Grants overview
• Funds overview

These dashboards provide a view of sponsored and funded FTE by combining SAP SuccessFactors and SAP S/4HANA data.